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House & Home

Energy-efficient appliances can be bought tax-free

Posted October 11, 2012 11:39 a.m. EDT

— North Carolinians can save money on selected Energy Star-rated appliances during the state’s fifth-annual Energy Star sales tax holiday, which runs Nov. 2-4.

Products that meet energy-efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy are exempt from sales and use taxes. Qualified products feature the distinctive Energy Star label, making them easier to identify.

Items include Energy Star qualified clothes washers, freezers, refrigerators, central air conditioners, room air conditioners, air-source heat pumps, ceiling fans, dehumidifiers and programmable thermostats. There is no price floor or ceiling for products to qualify for exemption from sales and use taxes during the holiday.

Rentals of these products are not exempt from sales and use taxes during the holiday.

An item is eligible for the exemption if the customer pays for it during the holiday period and the retailer accepts the order and takes an action to fill the order for immediate delivery. If a customer requests delayed shipment until after the holiday ends, the order is not considered “for immediate delivery” and isn't exempt from sales and use taxes.

If deliveries are delayed because of a backlog a product is still eligible for the exemption during the holiday.

Items purchased for use in a trade or business are not covered by the exemption and are subject to applicable sales and use tax.